First time owner,buy to let

SavingPennies_2

If the flat is all you can afford then just buy it and live in it! There's no need to go down the BTL route, which you don't sound very clued up on, then you can move up to a house later when you earn more/ save more/ meet a partner to share the costs or whatever. 

kingstreet

sim2335 said:

if it’s such a bad idea which it could be why do so many ftb start of with buy to let, then later on but own house.

They don't. In 38 years I've done BTL mortgages for about four FTBs.

thegentleway

sim2335 said:

Anything elese I need to pay?

Maintenance, repairs, etc...

I bought a B2L as a FTB. It is not common; I've never met anybody else who's done it. I wouldn't recommend it in your case as you are throwing away the SDLT relief for FTB (it wasn't applicable to me as first home was going to be over threshold).

3card

sim2335 said:

Look to get a 1 bed room flat I seen today, as a buy to let it’s 95k and 5 minutes drive from my house 107 years left on lease

My mum will help me out and broker said they could get me 75k

So I would put down 20k deposit.

The Monthly rent is £550

I would pay:

landlords insurance

Ground rent

Service charge

Estate agencies

All this looks like I will pay £300 a month.

Anything elese I need to pay?

It has 107 years left, the whole point of buying it is to make a profit.

I will already profit from rent.

Then sell it in 5-7 years when I can afford freehold or sooner if I have a partner.

Do these figures include your mortgage monthly payments?

My thoughts on your figures are you will be receiving a yearly figure of £6600 and you will be paying out a MINIMUM of £3600 which shows a £3000 MAXIMUM profit of which you will need to pay tax on at your tax rate (possible 20%) 

Obviously you also need to work out if you would accept that the tenant doesnt pay the rent and you have to start the eviction process
Can you afford the costs associated to the property without this rental income? If the answer is no then i wouldnt even think about it

freesha

Why would you A ) give up your FTB status, in order to B ) set up a residential letting business that you clearly don't know much about?

Slithery

From this OP and your previous posts you obviously have no idea what starting and running a residential lettings business involves.

If you decide to go ahead with this terrible idea then as well as almost definitely losing money you'll also end up in the 'type of landlord to avoid at all costs' category.

london21

sim2335 said:

Look to get a 1 bed room flat I seen today, as a buy to let it’s 95k and 5 minutes drive from my house 107 years left on lease

My mum will help me out and broker said they could get me 75k

So I would put down 20k deposit.

The Monthly rent is £550

I would pay:

landlords insurance

Ground rent

Service charge

Estate agencies

All this looks like I will pay £300 a month.

Anything elese I need to pay?

It has 107 years left, the whole point of buying it is to make a profit.

I will already profit from rent.

Then sell it in 5-7 years when I can afford freehold or sooner if I have a partner.

Personally prefer minimum 2 bedrooms.

The difference in price sometimes not very much and 2 bedroom gives more variety. 

sim2335

3card said:

sim2335 said:

Look to get a 1 bed room flat I seen today, as a buy to let it’s 95k and 5 minutes drive from my house 107 years left on lease

My mum will help me out and broker said they could get me 75k

So I would put down 20k deposit.

The Monthly rent is £550

I would pay:

landlords insurance

Ground rent

Service charge

Estate agencies

All this looks like I will pay £300 a month.

Anything elese I need to pay?

It has 107 years left, the whole point of buying it is to make a profit.

I will already profit from rent.

Then sell it in 5-7 years when I can afford freehold or sooner if I have a partner.

Do these figures include your mortgage monthly payments?

My thoughts on your figures are you will be receiving a yearly figure of £6600 and you will be paying out a MINIMUM of £3600 which shows a £3000 MAXIMUM profit of which you will need to pay tax on at your tax rate (possible 20%) 

Obviously you also need to work out if you would accept that the tenant doesnt pay the rent and you have to start the eviction process
Can you afford the costs associated to the property without this rental income? If the answer is no then i wouldnt even think about it

Yes the £550 is monthly mortgage paid by tenant , I could afford to pay that if tenant does not pay, but I would pay for insurance to cover that if they do not pay.

in_my_wellies

london21 said:

sim2335 said:

Look to get a 1 bed room flat I seen today, as a buy to let it’s 95k and 5 minutes drive from my house 107 years left on lease

My mum will help me out and broker said they could get me 75k

So I would put down 20k deposit.

The Monthly rent is £550

I would pay:

landlords insurance

Ground rent

Service charge

Estate agencies

All this looks like I will pay £300 a month.

Anything elese I need to pay?

It has 107 years left, the whole point of buying it is to make a profit.

I will already profit from rent.

Then sell it in 5-7 years when I can afford freehold or sooner if I have a partner.

Personally prefer minimum 2 bedrooms.

The difference in price sometimes not very much and 2 bedroom gives more variety. 

Agree - save for 2 bedrooms then live in it and rent out the 2nd bedroom using the rent-a-room scheme. Still rules to follow but you might make more money towards your next property

Rumana03

sim2335 said:

Look to get a 1 bed room flat I seen today, as a buy to let it’s 95k and 5 minutes drive from my house 107 years left on lease

My mum will help me out and broker said they could get me 75k

So I would put down 20k deposit.

The Monthly rent is £550

I would pay:

landlords insurance

Ground rent

Service charge

Estate agencies

All this looks like I will pay £300 a month.

Anything elese I need to pay?

It has 107 years left, the whole point of buying it is to make a profit.

I will already profit from rent.

Then sell it in 5-7 years when I can afford freehold or sooner if I have a partner.

I have a buy to let property which only has 6 years left on the mortgage till it has been paid off. At the beginning everything seemed pretty straightforward and not too much hassle but as the years have gone on it has been an absolute nightmare. Sometimes it felt like life revolved around that property and there was so many issues to deal with. Back in the day things were easier for landlords and there were less rules and regulations but now you have to be so clued up with it all. Then there's the yearly self assessment tax return which I absolutely dread completing every year because it's pretty long.

I've seen good tenants and bad tenants. I once had a tenant suddenly leave (left lots of their belongings in the property) and they hadn't been paying bills so the electricity & gas had been cut off to the house. It was a very stressful time & I spent a goor couple of hours or so sorting it all out.
The current tenants I have owe me over £14k in rent arrears and I am still waiting for the eviction to take place. To say it has been stressful is an understatement! And I very much doubt I will get those rent arrears back.

Honestly I don't know why anyone in their right mind would want to get a buy to let especially now as things become harder for landlords and the law tends to protect tenants even if they are in the wrong.